Bookmakers have always quickly adapted to trends, including providing new payment methods. Recently, more and more bookmakers are accepting cryptocurrencies for deposits and withdrawals. Some operators even opted to cater solely to crypto users.
What are the driving factors behind this new trend? What makes crypto betting attractive? Let’s discuss the growth of crypto betting in-depth and what makes it popular among punters.
The Growth of Crypto Betting
In 2021, around 8.5% of sports betting gross gaming revenue came from crypto transactions. However, this was only the beginning of crypto betting. The number grew by over 20% between 2022 and 2023, while the crypto bet count rose by over 50%.
The number of punters interested in crypto gambling also quadrupled between 2019 and 2021. In 2022, around 4% of online gambling searches were related to cryptocurrencies. This shows the future potential of crypto gambling in the industry.
Advantages for Punters
When investigating why crypto betting is popular, it’s essential to consider the users’ perspective. Here are a few common reasons crypto betting can be advantageous.
Transaction Speed
Regarding withdrawals, all punters would agree that receiving them as soon as possible would be preferable. Unfortunately, some traditional payment methods often require several days to finish.
This is where cryptocurrencies step in. One of the most common reasons people prefer to bet using cryptocurrencies is the transaction speed. Instead of taking days, withdrawing using cryptocurrencies can be instantaneous. Depositing would also take minutes to complete. Therefore, you can immediately place your bets after your deposits are confirmed.
Lower Fees
Most payment methods charge users with a percentage of their transactions as fees. Credit cards may charge users 2% to 10% when used on gambling sites. Bank transfers are known to have a high cost, especially for transacting on online gambling sites. Not to mention, some sports betting sites also charge extra for deposits and withdrawals.
Fortunately, cryptocurrencies often offer a much lower fee than traditional payment methods. Depending on your chosen cryptocurrency, the cost differs. Let’s take Bitcoin as an example. Bitcoin usually only charges users under £1 per transaction. This allows punters to save their winnings and avoid extra spending when depositing.
More Privacy
Your transactions are easily tracked using traditional payment methods when transacting to an online betting site. They would be listed on your banking account, and not every punter would want their transactions with online betting to be so public.
One of the advantages that cryptocurrencies offer is heightened anonymity. Public ledgers record all cryptocurrency transactions, but all users’ identities are encrypted. Some cryptocurrencies are fully anonymous. Meanwhile, others increase anonymity to ensure all transactions are more challenging to trace. This is an attractive advantage for many punters who want more privacy.
Accessibility
Cryptocurrencies might have been challenging to obtain years ago. However, they’re much easier to purchase now, with many exchanges accepting most fiat currencies. The number of merchants accepting cryptocurrencies also keeps growing. This way, crypto users have multiple ways to spend their digital currencies.
Cryptocurrencies are also less bound by borders, unlike fiat currencies. Although each country’s regulation may affect specific cryptocurrencies and restrict their uses, your country of residency would matter less when transacting using crypto.
Transparency
Blockchain-based tokens record transactions on a public ledger. That way, you can easily monitor your spending and withdrawals. All punters can also keep an eye on the bookmakers’ fairness based on what they’ve received.
Advantages for Bookmakers
One reason more crypto bookmakers are catering to users is the increasing demand. However, accepting cryptocurrencies also benefits operators. It makes them an attractive method to add to their betting sites.
Cost Efficiency
The cost of integrating cryptocurrencies is relatively low. Operators who eliminate all fiat options and only provide cryptocurrency payment can be more cost-efficient and allocate funds more effectively.
For example, bookmakers reinvest in enhancing customer experience and improving their platforms’ services. This allows them to offer users better odds and more preferred options.
Appealing to A New Customer Base
It’s undoubtedly essential for gambling site operators to actively follow trends and adapt to what people are looking for. When an operator decides to start offering crypto payments, it can appeal to a new customer base.
In the US, 62% of active punters interested in crypto are aged 18 to 34. Integrating cryptocurrencies into the bookmaker’s payment method means they’ll remain relevant and give access to a broader customer base. Crypto users are known to be more experimental and would be willing to try innovative betting formats. These include live in-game betting and esports, in which markets have seen quick growth.
Fewer Chargebacks
Chargebacks, when credit cards reverse transactions to the holder, can be a significant problem for bookmakers. Not only is it troublesome for the bookmaker, but customers can also feel uncomfortable.
On the other hand, cryptocurrencies can’t do chargebacks. No party can reverse crypto transactions, so bookmaker can secure their profit and lower the risk of financial loss. That way, operators would spend less time ensuring each transaction finishes nicely. The number of disputes and refunds would also be lessened. With blockchain providing higher security, operators, and punters can feel safe and comfortable.
Smoother Transactions
Cryptocurrency transactions don’t require any middleman to finish. Therefore, it’ll be easier to finish from the operator’s side. The process would be much quicker, too, so operators won’t spend too long to ensure all payments go through.
When users transact using fiat currencies, operators may face currency issues. Transactions can be too long, and some users send complaints requiring the operator to recheck the progress. By integrating crypto payments, operators can save time in the long run.
The Future of Crypto Betting
Crypto betting has been steadily growing in popularity. More and more punters are getting interested in using cryptocurrencies when betting. Whether due to the heightened security, extra anonymity, or transaction speed, crypto is an attractive choice. Yet, it seems like this is only the beginning of crypto betting.
Innovations are likely to speed up payments. The development of cross-chain technologies will allow players to bet and cash out across multiple blockchains, not limited to the blockchain on which the bookmaker operates. That means you can do an instant exchange without delays, regardless of the crypto you use to bet.
The growth of AI may also affect how cryptocurrencies are used. Bookmakers have already used AI to personalise each user’s experience, so getting AI could even drive crypto to be more influential.
Punters will also likely see development in regulations, as many countries are still in the grey area regarding crypto use. That way, you can bet your crypto with more confidence.
